Equity mutual funds witnessed a rise of 17.33 per cent in inflows to Rs 5,407 crore in May compared to Rs 4,608.74 crore seen in the previous month. Overall net inflows in open ended schemes stood at Rs 70,119 crore.
"The retail fund flows would now further strengthen on the back of political stability, promise of further economic reforms and improving macro-economic environment coupled with healthy corporate earnings growth," Amfi CEO N S Venkatesh said.
According to him, continued retail investor confidence through SIPs has now set a new normal with monthly flows consistently crossing over Rs 8,000 crore.
On the other hand, credit risk fund recorded an outflow to the tune of Rs 4,155 crore last month, higher than Rs 1,253 crore seen in April.
"While SIP numbers are still strong, there was some profit booking given the markets made new highs.
"Now that the election overhang is over, we expect investors should come back to making greater quantum of investments into equities, although higher valuations will continue to remain a hurdle" said Kaustubh Belapurkar, Director-Manager Research at Morningstar. PTI